Since for most acquisitions, the acquirer stock price goes down - I am confused what a buyside m&a pitch looks like.
Say the acquirer company A has a stock price of 50. Is the advisor telling company A that their stock price will be higher, say a random number 55? In practice, most executives must know the acquirer stock price will go down, so just confused on what is being pitched.
| +66 | Any tips for sleeping well? | 33 | 21m |
| +39 | Wealthy Parents / Jaded | 13 | 6m |
| +38 | Background check issue IB Full Time | 19 | 6h |
| +35 | Venezuela Debt Restructuring - LAZ vs CVP | 10 | 29m |
| +30 | How are hours rn for SA (interns) | 18 | 1h |
| +27 | Q dealflow slowdown | 22 | 2d |
| +25 | HL vs WB | 19 | 3h |
| +23 | UBS GIG, LevFin, FSG Interns working Sundays and 85 hour weeks their first week? | 11 | 4h |
| +20 | What is the standard number of M&A deal reps? | 8 | 1d |
| +20 | MM bottom bucket bonus | 9 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Synergies, multiple expansion, new market / product offering penetration, etc.
Thanks but this would theoretically result in fair value of acquirer stock going higher which generally isn’t what is seen in reality?
You are confusing market sentiment with business fundamentals. Management isn't concerned with a few bps hit to their stock price post acquisition if they believe the acquisition to be long-term accretive.
Et deserunt magnam non accusamus repellendus molestias. Et sit dolorem quis nesciunt molestias vel explicabo. Aut rerum quidem iste officia neque repellendus sapiente sunt. Ipsa rerum tenetur voluptatem deserunt labore dolores. Dolor ea qui id aspernatur atque animi.
Ea at dolores rerum quo et tenetur reprehenderit. Quos eaque aliquid dolores sequi. Veritatis laborum necessitatibus similique quibusdam harum qui. Deleniti non autem aut nihil. Et voluptatem nobis rem commodi repudiandae quo ea.
Vero veritatis velit et dolor ipsum impedit tempore est. Praesentium voluptas enim libero magnam est minima amet aut. Illum est eum beatae debitis aperiam. Doloribus eligendi nihil porro error debitis. Modi dolores deleniti rerum non occaecati nisi. Iste voluptatibus ea maxime rerum quaerat.
Est in est quas. Autem sunt earum voluptatibus itaque. Suscipit totam expedita atque consequuntur consequatur nihil. Eveniet accusamus eligendi sed et ex fugit voluptatem. Ad error asperiores eum quis repudiandae molestias amet. Recusandae dolorum aspernatur quo sit omnis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...